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Out-of-control whiplash fraud is adding to the cost, yet last week the Ministry of Justice was accused of giving criminal gangs the green light to continue defrauding motorists to the tune of £3million every single day.

With the as the Ministry prioritising Brexit and prison reform, it has slammed the brakes on proposed reforms to the personal injury claims system that is so routinely abused by “crash for cash” gangs who stage accidents with innocent motorists and file fraudulent personal injury claims.

Rob Townend, UK claims director at Aviva, said: “Organised crime has won the day. Carry on frauding, as we are saying.”

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Ministry of Justice was accused of giving criminals the green light to continue defrauding motorists

He added: “The news of a delay to planned Government whiplash reforms is a blow to families and honest motorists who now face paying for lawyer profits and criminal acts by fraudsters.”

Townend said that failing to reform the broken motor claims system is also a charter for more nuisance calls.

“Last year claims management companies bombarded poor consumers with more than 720 million calls and we expect this number to grow,” he said.

He is urging the Government to push ahead with the reforms, which will hit fraudsters, end nuisance calls and save every motorist £50 a year.

James Dalton, director of general insurance policy at the Association of British Insurers (ABI), said insurers are facing the perfect storm of rising costs from personal injury claims, repair bills and rising IPT.

“Far more needs to be done to ensure that honest motorists can get the best possible motor insurance deal,” he said.

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Failing to introduce this reform is allowing motor criminals to flourish with innocent motorists

He added the delay to whiplash reforms has left “ambulance chasers laughing all the way to the bank”, costing motorists nearly £1billion a year.

“The UK has one of the most abused systems in Europe,” he said.

“Without action, claims management companies will continue to make nuisance calls and text honest motorists, encouraging them to make fraudulent and exaggerated claims through claimant law firms.”

The ABI also called for a brake on any further rises in IPT after two rate hikes increased the tax from 6.5 per cent to 10 per cent.

This is punishing responsible motorists and encouraging the growth of uninsured drivers.

The Motor Insurance Bureau estimates around one million motorists in England and Wales drive without insurance.

Chief executive Ashton West said someone is involved in a fatal accident with an uninsured or “hit-and-run” driver every three days.

“This highlights the devastating impact of uninsured driving on families up and down the country.”

Steve Barrett, head of car cover at Churchill Insurance, said it is “maddeningly unjust” that law-abiding motorists pay for the million drivers on our roads who choose to drive without insurance.

If caught, uninsured motorists risk having their car seized, six points on their driving licence and a £300 penalty fine.

He added: “The penalties should be far higher and money generated from increased fines should be used to help the police catch more uninsured drivers.”

Churchill said it will protect the no-claims discount and pay the excess of any comprehensive car insurance customer hit by an uninsured driver, but not every insurer does this, so check your insurance policy.